The Appraisal Foundation has released the first of its “best practices” guides for valuations in financial reporting. This one addresses the issue of contributory asset charges and is available on The Appraisal Foundation’s website:
https://appraisalfoundation.sharefile.com/d/s80f9c7da9e744de9
This monograph, named “The Identification of Contributory Assets and Calculation of Economic Rents” is the work of a committee established by the Appraisal Issues Task Force (AITF). The AITF has other committees at work which will be releasing guidance on additional topics related to valuations in financial reporting. The goal of this effort is to reduce “diversity in practice.”
Valuing intangible assets for financial reporting is a tricky business. Hire two well-qualified appraisers to value the same collection of assets, and it’s likely they will come up with different values. Some diversity is unavoidable. Valuation, after al ...